Local companies choosing to list in other markets is a warning sign that the entire capital markets value chain may similarly move away from Singapore, says Singapore Exchange (SGX Group) chairman Koh Boon Hwee.
In a letter to shareholders from the bourse operator’s latest annual report, released Sept 15, Koh cautions that “Singapore may remain a booking centre, but the talent, innovation and higher-value margins will find their home elsewhere”.
Koh, who succeeded Kwa Chong Seng as SGX chairman in 2023, writes: “Here’s the hard truth: if our best companies choose to list overseas, the implications go far beyond SGX Group. Over time, the entire value chain — investment bankers, corporate lawyers, accountants — will shift to jurisdictions where the action is.”
Thus, Singapore needs an “ambitious and broad vision” for its capital markets beyond equities and a policy framework “that will give us a chance to realise that vision”, he adds.
Koh says he is “encouraged” that the Monetary Authority of Singapore’s (MAS) equities market review group has “taken steps in the right direction” to strengthen the competitiveness of the Singapore equities market.
But this is just the beginning, Koh adds. “These efforts must compound at every stage of development.”
See also: SGX CEO Loh Boon Chye paid $7.8 mil for FY2025, 3.3% higher y-o-y
Citing the example of Singapore’s path to becoming a research and development hub, Koh notes that this goal began with a $2 billion investment under the first National Technology Plan in 1995.
This was followed by $4 billion in the Science and Technology Plan of 2000, which increased to $6 billion in 2005, $13.5 billion in 2010, $16 billion in the Research, Innovation and Enterprise (RIE) Plan of 2015, $19 billion in 2020 and $25 billion in 2025.
“This deliberate flow of investment has not only sustained a robust innovation ecosystem in step with Singapore’s economic development, but underscores how meaningful progress is achieved through consistent, long-term commitment — not one-off efforts,” writes Koh.
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Similarly, Singapore’s capital markets require a “continuous commitment of resources and strategic direction”, says Koh, praising the government’s $5 billion “injection” into the domestic asset management ecosystem via the Equity Market Development Programme (EQDP), which has so far deployed $1.1 billion to three asset managers.
That said, the government, regulators and SGX Group alone cannot fully shape the outcome for Singapore, says Koh. “In addition to being more willing to take first-mover risks, we also need individuals to take greater responsibility for their own decisions. These are inescapable factors that make a market.”
He adds: “Therefore, I urge all stakeholders to come together and actively participate in shaping the future of our capital markets.”
Elsewhere in the annual report, SGX Group CEO Loh Boon Chye was paid $7.8 million in the FY2025 ended June 30, 3.3% higher than his total pay package of $7.6 million last year.
